FG Awards N90b Gas Pipeline Contract


In a move to boost electricity supply to Nigerians, government has awarded a contract of N90.4 billion for gas supply to the country’s power stations, Labaran Maku, Minister of Information told journalists at the end of Wednesday’s meeting of Federal Executive Council.

The gas project was part of the series of contracts worth N102 billion approved by FEC today.

Maku explained that the gas projects include the construction of the strategic gas pipeline from Obiafun/Obirikom in Rivers state to Oben in Edo state to facilitate the supply of gas to major power plants located in the southern parts of the country.

According to him, the new pipelines, when completed, will help in solving problems of shortage of gas supply by ensuring that gas is sufficient in Lagos and all the power plants located in that southern part of the country.

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Barth Nnaji, the Minister of Power had cited inadequate gas supply as one of the hindrances against improvement in power supply in Nigeria.

The projects were awarded to two companies with an expected delivery in 24 months.

The Council also approved N9.8 billion contracts for the supply of ICT equipment to some higher institutions in the country and another N266.9million contract for consultancy services for the master plan of the Nigerian Ports Authority.